Lululemon shares plunge on poor outlook

The bottom fell out of Lululemon stock Thursday.

Shares of Lululemon(LULU) fell more than 11% after the yoga apparel maker lowered its earnings and sales outlook.

Lululemon expects to earn between 78 cents and 80 cents per share in the current quarter, while revenue is estimated between $535 million to $540 million. Analysts had been expecting earnings of 84 cents per share on revenue of $572 million. The company also gave earnings and sales guidance for the upcoming fiscal year that was below Wall Street's consensus estimates.

Store traffic has been slow in November and December. The company is also expecting same-store sales to be flat in the fourth quarter, said Lululemon chief financial officer John Currie in a conference call with analysts. The company has also been experiencing supply issues as it beefs up quality controls, he added.

In March, Lululemon announced a recall of yoga pants that were unintentionally see-through. The episode hurt Lululemon's bottom line. CEO Christine Day also announced plans to step down, making investors even more nervous about the company's future.

This week, Lululemon said Laurent Potdevin, who had been the president of shoe company TOMS, would replace Day next year. In a surprise move, the company also said founder and non-executive chairman Chip Wilson will resign in June 2014.